Because of the way the rules are written, and the structure of the offering, they're STILL in compliance, now... because that's just the fact in how math works.
It is what it is.
I'm sure there are some few traders out there who will find it annoying that they won't get to play the usual games, here, in the trade around the $1 price point... at least not until the preferred are converted. But, being pissy and fussing about it like little girls would be a waste of their time... and I, for one, don't really care how they feel about it. The company controls the timing... so, there's also not a point in playing the clock, trying to apply timing pressure in the trade... while there are a lot of other opportunities for them that will be wasted, where the tilt of the playing field provides more advantage.
DHT management have navigated this market brilliantly... and that's probably a big part of why they do have the solid support of their investors... which the result in the offering also shows.
There are a lot of different ways in which they could have resolved the issues with the exchange. The method they chose appears to me a remarkably useful one both for them and their investors, as it has accomplished more than one thing. The path they chose for regaining compliance accomplishes that while it also rewards their existing holders for their support, rather than the opposite, which is far too common. That it also results in a significant new contribution to capital while sidestepping the risks being posed now by financing through the "banks" is not a thing I find problematic. Using the leverage inherent in bank $ makes perfect sense, when their market supports it, and when the capital markets are properly functional... all other things being equal. Currently, the markets aren't overly functional, and all other things aren't equal... so, the growing risks being posed by the banks in the use of the banks money means it isn't nearly as useful... particularly when there are better, cheaper alternatives.
That DHT has remained profitable, while reducing those risks, particularly in the recent market... is itself no mean feat.
Meanwhile, the market picture has changed a bit in the last few months. We've gone from everyone moaning about the indexes plunging to historic lows, and ruing all the boats rusting at anchor... to having a meaningful shortage of VLCC's available for meeting resurgent oil demand in China... while the LNG carrier market is still in what looks like a longer term shortage that won't be met for some decades...
Who'd a thunk it ?
That shift occurring now leaves mostly smaller boats to ply the trade in the Med and the Atlantic. In the U.S., growth at a pace of 2% isn't wowing anyone... but, growth is growth not the opposite, and it's happening at a pace which will require sustaining oil imports at a level that means a few more boats will be needed than before... and, many more than before, with the VLCC's shifting routes to the China trade. Little of that directly impacts DHT's contracts... but, it does alter the market perspective for shipping generally... only the more looking out three years, or so.
The U.S. is "almost" meeting internal demand growth with increased domestic production at the current low rate of growth. Another percentage or two... will alter that balance dramatically. Meanwhile, others are growing too, creating a more uniform spread in the global market, ex-Europe, than many likely expected...
Europe is still drifting aimlessly into a double dip recession... but, given their lack of leadership and horrendous policy choices, that's about as good a result as you ever could have hoped for in Europe. They're actually vastly exceeding expectations by not yet having dragged the entire globe into another Great Depression...
Not a completely rosy picture for the world economy... but, we're also not close to realizing the doomsday scenario that has been expected, and has largely been priced into shipping...
"At any rate, every day they stay below a dollar siphons that average of yours down."
FWIW... whether in the offering, or in the market, I don't really mind being able to lower my average ? I think DHT is worth more now, than when I started buying it... having dodged a few risks and having found a few new opportunities.
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